Wednesday Closing Report: Still range-bound, with a downward bias

The market opened on a strong note this morning but sideways trading, coupled with across-the-board selling, dragged the indices lower at the end of the session.

The local market opened higher this morning, brushing aside concerns about tensions in the Korean peninsula and the global economy. Jittery trade saw the indices dipping into the red for a brief period in morning trade. They soon bounced back to touch the day's highs but range-bound trading led to a sharp decline towards the close.

Finally, the Sensex closed 231.99 points (1.18%) lower at 19,460. The bellwether index touched a high of 19,835 and a low of 19,376, intraday. The Nifty was down 69 points or 1.16% at 5,865. The index oscillated between a high-low of 5,976 and a low of 5,833 during the session.

The market breadth was negative today. The Sensex had 25 declining stocks against five gainers while the Nifty settled with 44 stocks in the green and six gainers. Among the broader indices, the BSE Mid-cap index lost 1.11% while the BSE Small-cap index shed 0.56%.

The top gainers in the 30-share Sensex list were Mahindra & Mahindra (up 3.23%), Bharti Airtel (up 0.76%), Tata Steel (up 0.54%), ITC (up 0.41%) and Tata Motors (up 0.32%). The losers were led by State Bank of India (down 3.34%), DLF (down 3%), BHEL (down 2.74%), ICICI Bank (down 2.73%) and HDFC Bank (down 2.67%).

BSE Fast Moving Consumer Goods (up 0.24%) and BSE Auto (up 0.05%) were the only gainers in the sectoral space today. The sectoral losers included BSE Bankex (down 2.94%), BSE Realty (down 2.88%), BSE PSU (down 1.84%), BSE Capital Goods (down 1.21%) and BSE IT (down1.06%).

In a move that could make it difficult for corporate entities to set up stock exchanges, a Securities and Exchange Board of India (SEBI) committee on Tuesday recommended that only banks and public financial institutions could be anchor investors in bourses and stopping them from listing or making huge profits.

According to industry sources, the recommendations would make things difficult for FTIL group-founded new bourse MCX-SX, which is allowed to trade only in currency futures, and its plea for trading in equity and other segments has already been rejected by SEBI.

Markets in Asia ended mixed on profit-booking, reacting to tension between the two Koreas, and on fears that more members of the European Union might face debt issues. The Chinese market ended higher as investors there resorted to bottom fishing.

The Shanghai Composite jumped 1.12%, the Hang Seng gained 0.56%, the KLSE Composite was up 0.07%, and the Straits Times rose 0.34%. On the other hand, the Jakarta Composite fell 0.53%, the Nikkei 225 was down 0.84%, the Seoul Composite lost 0.15% and the Taiwan Weighted declined 0.38%.

The US markets closed sharply lower on Tuesday following tensions after North Korea fired artillery shells at a South Korean island. In economic news, the Federal Reserve on Tuesday revised its economic growth forecasts downwards for next year. Besides, a fall in sales of existing homes in October made investors wary of the pace of economic growth in the world's largest economy.

The Dow tumbled 142.21 points (1.27%) to 11,036. The S&P 500 shed 17.11 points (1.43%) to 1,180. The Nasdaq declined 37.07 points (1.46%) to 2,495.

Inflows from domestic institutional investors were offset by outflows by foreign institutional investors on Tuesday. The latter pumped in Rs1,503 crore in the equities segment while the latter pulled out funds worth Rs1,493 crore yesterday.

Tata Power (down 0.73%) plans to invest Rs850 crore till FY12 to beef up generation, transmission and distribution, a senior company official told reporters.

The company will invest Rs850 crore over three years (FY10 till FY12) to enhance its generation, transmission and distribution capabilities, said Tata Power's executive director-operations, S Padmanabhan.

Yes Bank (down 2.15%) and Shinsei Bank of Japan today signed an agreement to advise companies on cross-border deals between the two nations. The alliance will play an active role towards further augmenting investment flows into the Indo-Japanese corridor, a Yes Bank statement said.

It added the tie-up will enable both banks to leverage their combined expertise, strong local knowledge and excellent corporate relationships to jointly pursue M&As, JVs and merchant banking opportunities.

Punj Lloyd (down 1.16%) has bagged three contracts worth Rs 1595 crore. The first one is from Oil Corporation which is worth Rs 1123 crore. The second order is from Harouge Oil operations in Libya worth Rs 288 crore and the third order worth Rs 184 crore is from West Bengal Medical Service Corporation, a wholly owned undertaking of the government of the West Bengal.


Tata Motors expects 50% jump in LCV sales

Tata Motors Ltd today said it is expecting over 50% jump in the sale of its Ace family light commercial vehicles (LCV) in the current fiscal, on account of robust demand.

This translates into up to 2.5 lakh units for sale.

"Last year, we sold about 1.6 lakh unit of our Ace family. This fiscal we are targeting upto 2.5 lakh unit, including exports," Tata Motors said.

Tata Motors will launch two light commercial vehicles-Venture and Iris-early next year.

The Ace family comprises light commercial vehicles Magic, Winger and Ace. These are manufactured at the Panth Nagar facility.

The company today launched a new variant of its Winger, priced between Rs6.98 lakh-Rs7.35 lakh (ex-showroom Delhi).

On Wednesday, Tata Motors ended 0.32% up at Rs 1,217.50 on the Bombay Stock Exchange, while the benchmark Sensex closed 1.18% down at 19,459.85 points.


Coal India’s net profit rises 29% to Rs4,020 crore in September quarter

State run Coal India Ltd (CIL) reported a growth of 29.06% in its net profit at Rs4,020 crore during the September 2010 quarter. The net profit of the company was Rs3,115 crore during the corresponding period last year.

Net sales of the company was at Rs22,525.53 crore, a rise of 16.9% for the first half of the current fiscal as against Rs19,269.52 crore recorded in the same period the previous fiscal.

On Wednesday, CIL ended 2.98% down at Rs310.45 on the Bombay Stock Exchange, while the benchmark Sensex closed 1.18% down at 19,459.85 points.


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